“Some customers are reassessing their vendors in light of security concerns,” Nokia said in its earnings statement. Shares were up 6.8% in early trading.
Huawei has come under pressure from the Trump administration, which says the Chinese government could use the company’s equipment for snooping. Huawei denies the allegations.
In May, President Donald Trump signed an executive order barring US companies from using telecommunication equipment from sources the administration deems a national security threat.
The United States has since said it would ease restrictions on the ban, but the details remain unclear.
Tommi Uitto, president of mobile networks at Nokia, told CNN Business last month that the political situation has opened the door for Nokia to grab market share.
“There are some countries that have banned Chinese competitors, and of course that creates an opportunity for us,” Uitto said.
The wireless companies that purchase telecommunications equipment have been forced to adjust to the shifting regulatory landscape. On Monday, for example, the UK government said it needed more time to decide whether Huawei equipment should be banned from the country’s mobile phone networks.
In the United States, where nationwide wireless companies had been shying away from Huawei even before the Trump administration ban, Nokia has signed some of its largest deals to date.
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